Apple Likely to Cut Down iPhone SE Production over Slow Sales

Technology giant Apple is reportedly not planning to produce a large volume of the iPhone SE that it released last month to offset the slump of its flagship series, a report said.

A report in business publication Nikkei Asian Review quoted the parts suppliers as saying that Apple would continue its reduced production of iPhones in the April-June period in light of sluggish sales.

Apple apparently does not plan to produce a large enough volume of the small iPhone SE released last month to offset the slump of its flagship series, the report pointed out.

Slow sales of the flagship iPhone 6s and iPhone 6s Plus have forced Apple to lower production for the January-March quarter by about 30 per cent from the year-earlier period.

With sales still not up to the mark, Apple told its parts suppliers in Japan and elsewhere that it would maintain the reduced output level in the current quarter.

This prolonged production cut would affect the parts suppliers such as liquid crystal display panel manufacturers Japan Display and Sharp, memory chip supplier Toshiba and Sony, which provides image sensors for cameras, the report noted.

It is predicted that with their plants already operating at reduced rates, they may be forced to downgrade their earnings forecasts for the April-June quarter.

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